One of the financial institutions supporting the development of economies and the cooperation of the countries in the Black Sea region by allocating financing to the projects implemented by national authorities and private companies is the Black Sea Trade and Development Bank (BSTDB). This financial institution is interested in becoming part of cross-border projects focused on exports, as well as of technology transfer projects and programmes aimed at reducing the environmental impact. The sectors it activates in are those which have a contribution in the economic growth of the region, such as transport, energy, production, communications.
The role of the bank is to be a complementary source of financing and contributes only to part of a project’s cost, for loans the contribution covering over 35% of the total cost. The variety of credits can be amended depending on the operating requirements and relies on the interest rate (which can be set as fixed or flexible), currency emission (being conver-tible in any currency). Generally, maturity for credits financing a project vary from 3 to 10 years depending on individual operations, while long-run availability does not exceed 2 years.
Direct operations are set at 50-55% of the bank portfolio focusing on large and medium-sized companies enjoying positive economic perspectives. However, the other companies activating in the private sector and which need funds for the implementation of projects are also included, as well as public entities. Transport ranks first on the list of priority sectors of BSTDB with direct operations set at 30%.
Railway infrastructure becomes priority in the Black Sea Region
In the case of every member state, the bank’s strategies for 2011-2014 concern the necessity and granting of investments for infrastructure projects. Therefore, in the case of Ukraine, the bank mentions the importance of transport infrastructure for increasing competitiveness and integration into European networks stressing the importance of developing terminals. In the case of Russia, the important projects are those influencing the elimination of congestion, especially for exports. The rehabilitation and modernisation of international railway corridors are among the most beneficial projects of the Republic of Moldova, especially the electrification of the line Ukraine border – Bender – Chişinău – Ungheni (Romania).
For Azerbaijan, Greece, Albania, Armenia and Romania, BSTDB strategies to 2014 mention the importance of developing cross-border cooperation focused on the implementation of transport projects, especially railways and port facilities. Also, an important step in implementing projects will be to develop public-private partnerships supported through financing and assistance.
The importance of two countries increases due to their position in the Black Sea region whose transport infrastructure turn them into a bridge between Europe and Asia: Georgia and Turkey. They will benefit from financing for the projects aimed at improving the existing transport routes between the two countries and between Europe and Asia. Since in the past years these two countries have granted funds to infrastructure projects, over the next years the construction of transport infrastructure, especially railways, will play an important role in the economic development.
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